II-VI INCORPORATED ANNOUNCES SECOND QUARTER EARNINGS
II-VI INCORPORATED ANNOUNCES SECOND QUARTER EARNINGS PITTSBURGH, Jan. 21 /PRNewswire/ -- II-VI Incorporated
(NASDAQ-NMS: IIVI) today reported results for the second fiscal quarter ended Dec. 31, 1991.
Net earnings for the period were $206,000 ($0.08 per share) on revenues of $4,342,000. These results compare with net earnings of $75,000 ($0.03 per share) on revenues of $3,426,000 in the second fiscal quarter last year. Bookings for the current period were $4,700,000 compared to $4,078,000 for the second quarter last year. The current $2.5 million manufacturing backlog, however, reflects a two-year low. Included in bookings is the receipt of a previously reported contract from the Defense Advanced Research Projects Agency (DARPA) to work with an industry team to improve Cadmium Telluride as a substrate material for infrared focal plane array manufacturing. This contract is expected to result in $1.1 million in revenues over the next 15 months. Certain contract options, if awarded, would result in additional revenues and could increase the length of the contract to approximatley three years. However, during the second quarter other defense-related orders for optics and infrared materials were significantly below last year's equivalent quarter and fiscal year-to-date levels. For the six months ended Dec. 31, 1991, II-VI reported net earnings of $473,000 ($0.18 per share) on revenues of $8,467,000. This compares to net earnings of $301,000 ($0.11 per share) on revenues of $7,054,000 for the same period a year ago. Sales increased as a result of higher carbon dioxide laser optics shipments. Optics production from the Singapore facility continued to increase. Gross margin percentage decreased primarily due to higher-than-expected expenses in infrared materials production partially offset by improved gross margins from Singapore and Saxonburg, Pa., optics shipments. The adverse impact of lower infrared material yields was greater than expected and is continuing. As a result, earnings were reduced for the quarter by approximately $0.08 per share and could be reduced to the same extent in the second half of fiscal 1992. The effect of staff reductions in prior quarters contributed to lower corporate overhead and internal research and development expenses. Net interest and other expenses were unfavorably affected by foreign exchange rates and domestic interest rate reductions on invested funds. A reduction in the estimated effective tax rate for the quarter contributed to increased net earnings. In discussing the results of the quarter, Carl J. Johnson, chairman and chief executive officer, stated, "To this point, fiscal year bookings have provided the opportunity to increase first half product shipments by 18 percent over last year. However, continued market uncertainty combined with our infrared materials production issues are expected to impact third quarter results and bookings. We expect military infrared optics and materials markets to improve later in the year. This, coupled with expected improved yields, should favorably impact margins after the third quarter." Headquartered in Saxonburg, II-VI Incorporated designs, manufactures and markets optical and electro-optical components and materials for precision use in infrared devices. The company's products are used in high-power lasers for industrial processing, lasers for surgery and other medical applications, and for military sensing systems. II-VI INCORPORATED AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) ($000 except per share data) Period Ended Three Months Six Months Dec. 31 1991 1990 1991 1990 Revenues Net sales $4,214 $3,416 $8,309 $7,020 Contract research & development 128 10 158 34 4,342 3,426 8,467 7,054 Costs, expenses & other income: Cost of goods sold 2,808 2,091 5,319 4,057 Contract research & development 96 9 121 33 Internal research & development 120 223 256 406 Selling, general & administrative expenses 1,018 996 2,039 2,100 Interest and other expense (income) - net 60 (15) 109 (23) 4,102 3,304 7,844 6,573 Earnings before income taxes 240 122 623 481 Income taxes 34 47 150 180 Net earnings 206 75 473 301 Earnings per share $0.08 $0.03 $0.18 $0.11 Average shares outstanding 2,644 2,638 2,636 2,635 -0- 1/21/92 R /CONTACT: John M. Sherbin II, treasurer and chief financial officer of II-VI, 412-352-5250/ (IIVI) CO: II-VI Incorporated ST: Pennsylvania IN: ARO SU: ERN 745 01-21-92 15:26 EST DM -- PG008 -- 2072 01/21/92 16:50 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 21, 1992|
|Previous Article:||CCB FINANCIAL CORPORATION ANNOUNCES EARNINGS AND DIVIDEND|
|Next Article:||BRITISH AIRWAYS FLORIDA SERVICES RE-ORGANIZED|